2004 (12) TMI 201 - AT - Customs

Summary

Issues:
- Appeal against modification of value of imported goods for assessment purposes based on purity of zinc content.
- Dispute over whether the imported goods qualify as Special High Grade Zinc.
- Interpretation of Daily Metal Bulletin prices for determining the value of imported goods.

Analysis:
1. The appellant appealed against an Order-in-Appeal modifying the value of imported Zinc Scrap "Scull" to USD 804.50 PMT for assessment purposes. The revenue had initially enhanced the value to USD 725 PMT based on the purity of zinc content in the imported goods, considering it to be near to Special High Grade Zinc.

2. The Commissioner (Appeals) upheld the revenue's decision, stating that the value of Special High Grade Zinc from the Daily Metal Bulletin should be used to determine the value of the imported goods. The appellant argued that the zinc content in the present goods was 98.89%, not meeting the purity standard of Special High Grade Zinc.

3. The Revenue contended that the purity of zinc in the imported goods was close enough to that of Special High Grade Zinc, justifying the use of prices from the Daily Metal Bulletin for valuation. However, it was established that the zinc content in the imported goods was 98.89%, whereas Special High Grade Zinc purity was 99.99% according to the Daily Metal Bulletin.

4. The Tribunal found that since the zinc content in the imported goods did not match the purity level of Special High Grade Zinc, the enhancement of value based on the Daily Metal Bulletin prices was not sustainable. Therefore, the appeal was allowed, setting aside the modification of the value for assessment purposes.